Frequently Asked Questions

What’s Stopping You?

Below are just some of the questions people have when planning a project and the ways in which BuildStore Mortgage Services can help. If you have any other questions call us on 0345 223 4888or request a callback from one of our advisers.

Will I need a lot of savings to build my own house?

• Not necessarily.  With Accelerator you can start your build with a relatively small deposit and borrow up to 95% of your land costs and up to 95% of your build costs.
• If you do have savings however or access to other cash then you may prefer to use an arrears stage payment mortgage.  Whatever your circumstances our advisers will find the best product to suit your needs.

Will I have to sell my current house before my new home is ready?

• This will depend on how you wish to finance your build and how much cash you have in savings.  If you choose an arrears stage payment mortgage then you will need sufficient money for a deposit of between 15 and 25% of the land cost as well as money to pay for the materials and labour for the early stages of the build.  If you do not have sufficient savings then you may decide to sell your current house to release equity before starting your new project
  
  If you don’t want to sell your existing house and move into temporary accommodation before your new build is complete then Accelerator may be right for you.  Receiving your stage payments in advance during the project will ensure that cashflow is not an issue during the build so you can continue living in your current house until you are ready to move.  No costly furniture storage, no caravan on site – Accelerator is convenient and flexible.

Is there only one type of mortgage available for self building?

• BuildStore’s Accelerator Mortgage Scheme is supported by a panel of leading lenders. This selection means that we can recommend the right mortgage to suit you and your project including the mortgage type (discount, tracker, fixed rate etc), repayment method and repayment terms.
  Similarly, arrears based self build mortgages are also available from a number of different lenders offering a variety of terms.
  
  Mortgage products change on a regular basis so call us to find out what is currently available.

How will I know which mortgage is right for me?

• Our qualified advisers will talk through your project and finances carefully to ensure that they fully understand your requirements.  They will then make recommendations about the best mortgage for your circumstances.  All of our advisers specialise in self build mortgages and are trained to give you the best possible advice.

How can I be ready to buy my ideal plot of land as soon as it becomes available?

• Talk to our mortgage advisers now and we can start the ball rolling even before you have found your land.  We can talk you through the various options for financing your self build and work out how much you can borrow based on your current finances and commitments.  We can also review your existing mortgage and, for example, arrange a remortgage with a cash drawdown facility that will make it easier to put an offer on a plot as soon as it becomes available.
• The BuildStore Accelerator Mortgage Scheme will also lend money on land that has only Outline Planning Permission – some lenders will only lend on land with detailed planning permission which can take months to arrange and restrict the plot opportunities you have.

How can Accelerator make advance stage payments but other self build mortgages do not?

• To enable money to be released in advance and provide a positive cash flow, BuildStore has designed a unique additional cash flow benefit scheme. This provides the additional security required by the lender to not only allow them to release money at the start of each stage of the build but to also allow a higher percentage of the costs to be lent during the project by some lenders.
• The scheme ensures that you can borrow the amounts you need for each stage when you need them as the funds will be released as per the cost of your building work and will not be subject to confirmation by a mortgage valuation at every stage*.
• . The cost of the scheme is met by you through an Additional Security Fee, but the savings made by not needing interim valuations at each stage of the build and the benefits of the positive cash flow provided mean that the overall cost of the project can be lower. In addition, with most lenders, because you are not waiting for valuations to be carried out before each stage payment is released, money is released more quickly, speeding up the completion of the project
• The fee on average is £2300. It is calculated specifically for your the build and may be more or less than the estimated fee quoted.

Does BuildStore only offer advance stage payment mortgages?

• No.  The BuildStore Mortgage Service's advisers have access to the whole mortgage market so if they consider a Traditional Arrears Self Build Mortgage is more suitable for you once they have established your circumstances, that is what they will recommend.

What is the position on stamp duty?

• One of the benefits of self building is that it is better value than buying a completed property.  One area where you get better value is in stamp duty as you only pay this based on the purchase price of the plot and not on the value of the completed house.

Not yet ready to build? 

• BuildStore Mortgage Service is the UK’s leading provider of finance to the self build and renovation marketplace but we also offer a full mortgage brokering service to find you the right deal on your mortgage whether you are buying a house, looking to lower your monthly payments or remortgaging your existing home to release equity. You may have to pay an early repayment charge to your existing lender if you remortgage.
• We operate on a ‘Whole of Market’ basis and have access to all of the top lenders as well as to mortgages available on an exclusive basis and will provide you with a level of expertise and knowledge not available by going direct to a lender.
• You may have to pay an early repayment charge to your existing lender if you remortgage.

Do I have to deal with you by telephone?

• We appreciate that you may prefer to discuss your mortgage requirements face to face with an advisor rather than over the ‘phone.  That is why you can meet with an advisor at The National Self Build and Renovation Centre in Swindon or the Scottish Self Build and Renovation Centre in Livingston (we always recommend calling to arrange an appointment with an advisor before making a special journey).

Call 0345 223 4888 to speak with one of our advisers or request a call back online.
Lines are open between 8.30am and 7.00pm Monday to Thursday, 8.30am to 5.00pm on Friday and 10.00am and 1.00pm on Saturday.

*Some lenders reserve the right to ask for an interim valuation later in your project to check on progress and Skipton Building Society require interim inspections at every stage.